Banking and Types of Accounts

The FDIC secures deposits up to

• $100,000

• $200,000

• $250,000

• unlimited

The NCUA secures deposits up to

• $100,000

• $200,000

• $250,000

• unlimited

Organize these options into the right categories

Groups:

(a) Checking Account

,

(b) Savings Account

,

(c) Money Market Account

• most likely to be attached to a debit card

• designed specifically to transfer money

• extremely low interest rate

• mainly to build a buffer or for emergencies

• higher minimum deposit

• strictly limited to just 6 transactions a month

• mid level interest rate

• highest interest rate

• highest interest rate of the three

• most liquid

Organize these options into the right categories

Groups:

(a) Credit Unions

,

(b) Banks

• Usually places a larger emphasis on customer service

• Usually offers lower interest rates on loans

• Funds up to $250,000 protected by FDIC

• More branches and ATMS

• Usually offers a greater variety of services

• A cooperative

• Usually charge higher interest rates on loans

• Non-Profit

• Wells Fargo

• Funds up to $250,000 protected by NCUA

• Greater online footprint

• NCSECU

• Created to make a profit

What is a non profit financial cooperative owned by its members that provides credit and other financial services?

• The Federal Reserve

• Credit Unions

• Banks

• Treasury

What is an advantage of a credit union? Check all that apply!

• lower fees for services

• higher fees for services

• lower rates on loans

• higher rates on loans

Which is NOT a function of commercial bank?

• Providing financial and tax planning advice
• Print money
• Providing insurance
• Exchanging foreign currencies

Mrs. Smith is saving money to buy a car. At first she kept the money she saved at home, but then her husband persuaded her to deposit the money into an account at the bank. Which of the following is the best reason for Mrs. Smith to deposit the money into an account at the bank?

• The money is safer in the bank than at home.

• She can withdraw her money at any time.

• The bank is near her house.

• She will receive a checkbook in her favorite color.

Owned by members or employees of a local employer

• Bank

• Credit Union

• Both

Offers the use of ATMs

• Bank

• Credit Union

• Both